What Bitcoin needs to do to Reach $47,000 Again
To reach the enticing $47,000 support zone, Bitcoin will have to break past the 1.9 million BTC resistance zone.
Bitcoin will have to break past the 1.9 million BTC resistance zone to reach the enticing $47,000 support zones, a drop below $42,000 will create a direct path to $37,000, according to data provided by IntoTheBlock.
The source of selling pressure
While the In/Out of the Money indicator will not signal the emergence or disappearance of selling pressure on the cryptocurrency market, it can be used to determine the asset's potential resistance on the way up.
$BTC analysis
As #Bitcoin drops below $42,000, the IOMAP reveals there's little support that could prevent from falling until $37k
On the resistance side, BTC is facing stiff resistance ahead. In order to reach $47k again, it must surpass over 3.2m addresses holding 1.9m BTC pic.twitter.com/3feQYnwxrn
— IntoTheBlock (@intotheblock) January 7, 2022
BTC may face the most selling pressure between $42,000 and $43,000, and between $45,000 and $47,000, as investors tend to take profits or de-risk their portfolios when an asset reaches its initial entry price.
Both zones contain 3.2 million addresses containing 1.9 million BTC. When each zone concentrates more addresses that have received assets at a specific price, the metrics show that each zone is wider than the other.
Zones of support
According to the same metric, the asset's biggest support zone is currently between $39,000 and $41,900, with 700,000 BTC held by approximately one million addresses.
The sudden drop in the number of holders appears in the $38,000 to $39,000 range, with fewer than one million addresses holding Bitcoin at a profit.
Bitcoin's profitability has dropped to 57 percent following the most recent market correction, with 36 percent of all holders trading or holding Bitcoin at a loss. At the time of publication, Bitcoin was trading at $41,585, down 3.8 percent on the day.
Bitcoin has broken through a critical support level
According to Mark Newton, managing director of Fundstrat Global Advisors, $45,655 was a key support level for Bitcoin.
The main cryptocurrency appears to be on track to go below $40,000 for the first time since September 2021 now that it has been breached.
FUNDSTRAT: “I had highlighted $45,655 as being important. This was violated on Tuesday, which in my view makes prices vulnerable to a decline down to test September 2021 lows near $39,573. This looks to be the first real support ..” #Bitcoin @MarkNewtonCMT pic.twitter.com/KDNz6z3vv2
— Carl Quintanilla (@carlquintanilla) January 6, 2022
